IBM unveiled a new eServer Power5 system for less than $5,000, an offering for customers that use Unix systems to power their small-and medium-sized businesses,

Like every pSeries server Big Blue has released since summer 2004, the
p5
510 is based on the Armonk, N.Y., company's 64-bit Power5 architecture,
which includes
virtualization technology adapted from the company's mainframe line. It
is
thin, only 2U (1U = 1.75 inches) wide.

The company's Virtulization Engine software allows each Power5
processor to
run 10 virtual servers at once and enables micro-partitioning, which
allows
clients to run several Unix and Linux servers on one system.

Available next week in rack form with one or two processors, the p5 510
runs
AIX 5L v5.3, the latest version of IBM's operating system. The server
also
supports Novell SUSE Linux Enterprise Server 9 and Red Hat Enterprise
Linux
AS 3, consistent with the vendor's commitment to open source, said Jeff
Howard, program director for IBM pSeries.

The pricing of the server is aggressive considering the technology in
the
machine, designed to take on boxes from rivals HP and
Sun
Microsystems in the two-way Unix market, which IDC
said
is a $2 billion market.

The new p5 510 then, officially fills out IBM's Power5 portfolio,
adding the
low-end ingredient to the company's mid-range and high-end machines.

"We've been doing pretty well in taking mid-range and high-end market
share
from Sun and HP in the last year and we thought there is a lot of room
to
take share at the low-end," Howard said, declining to say what IBM has
in
store for the Power5 line and the forthcoming Power6 architecture.

The p5 510 start at $4,867, minus an operating system. The machine
includes
the 1.65 gigahertz Power5 processor, 512 megabytes of memory, along
with a
first-ever three-year warranty. Most P5 system warranties run one year.

Howard said the p5 510 is also being offered as an express version
targeted
for SMBs that are more cost conscious. Express version of p5 510 costs
$3,967 to start for a one-processor machine running 1.5 GHz Power5
chips.

At the time, Big Blue officials said they believed the Unix market would be a $21
billion market opportunity, which is why the company is so intent on
focusing most of its server efforts on Unix. IBM admittedly has ground
to
make up. Just four years ago, it garnered a 15 percent share of the Unix
market, compared to 30 percent each by HP and Sun, according to IDC.

But Big Blue's steady rollout of Power5 products since July signals it is
serious in securing more market share in the lucrative Unix space.

In October, the vendor rolled out its most powerful Unix servers to date, a p5 595 and i5 595 capable of running 254 virtual servers on one machine.